Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 12.3, Problem 3QQ
To determine
Tax system and the equity of a tax system.
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4.
Why do government entities impose taxes and how is the type of taxation chosen (e.g., excise v. income v. sales taxes)?
4. What Factors Determine Who Bears the Burden of Taxation?
31) What are vertical equity and horizontal equity associated with?
the benefits principle of taxation
b. the ability-to-pay principle of taxation
taxes that have no deadweight losses
d. falling marginal tax rates
a.
C.
Chapter 12 Solutions
Principles of Microeconomics
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- What are some fiscal policies for improving a societys human capital?arrow_forward5. The tax system is used to reduce income inequality through the use of _____ taxes. Select one: a. progressive b. regressive c. efficiency offset d. proportional.?arrow_forwardxation) 12 11 20 9. 1. 1 6. S 4 3- 2- Figure 8-22 90 300 130 120 Refer to Figure 8-22. Suppose the government changed the per-unit tax from $3.00 to $4.50. Compared to the original tax rate, this higher tax rate would a. increase tax revenue and increase the deadweight loss from the tax. b. increase tax revenue and decrease the deadweight loss from the tax. c. decrease tax revenue and increase the deadweight loss from the tax d. decrease tax revenue and decrease the deadweight loss from the tax.arrow_forward
- 1. Though the tax structure (i.e., the tax base and rates) has much to do with the equity effects of taxation, its administration could also strengthen or weaken its fairness. If the tax administrator practices discretion in the grant of deductions, there is a. Regressive equity b. Progressive equity c. Vertical equity d. Horizontal equity 2. The potential of the income tax as a tool to enhance the equity of the tax system brings to the fore the importance of designing the scheme of income taxation in accordance with acceptable norms and principles such as allocating costs or burdens to the people. This is known as the: a. Non-compensation or set-off b. The Lifeblood Doctrine c. Marshall doctrine d. Ability to pay approach3. An egalitarian society normally is prejudiced towards a tax system which puts a heavier burden on those who have the greater ability to pay. An equitable tax is taken as one which promotes the unequal tax treatment of unequals. The tax must be so…arrow_forwardTyped plz and asap thanks please provide me a quality solution thanksarrow_forwardWhy do legislators vote for spending projects in districts that are not their own?arrow_forward
- Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by 200 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policys total costs and benefits? Do you think it will pass?arrow_forwardWhat is the difference between a progressive tax, a proportional tax, and a regressive tax?arrow_forward10arrow_forward
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